'File 9/34 Currency in Arab Shaikhdoms' [‎34r] (67/274)

ALL LETTERS TO BE ADDRESSED TO
THE EASTERN BANK LIMITED.
TELEGRAPHIC ADDRESS
EASTERTIDE.
dlii' diU'tmt iktnk,
(INCORPORATED IN ENGLAND,)
v/sC/Mm
28th July, /// 48.
The Political Agent A mid-ranking political representative (equivalent to a Consul) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Agency. ,
Bahrain •
Dear Sir,
With reference to your letter No. C/L-93 of date,
I have not heard of Pakiitan Currency being dlacredited in
Bahrain. It !■ true that the two Banka here are exchanging
them for Indian Currency at the rate of Ra*9/15/0 Indian Currency
for Ra.10/- Pakiatan Currency, the diacount of 1 anna per Ra.10/-
being taken to ycover the coat of repatriating the Pakistan notea.
It muat be underatood that while Indian Currency ia the domestic
currency, established by long usage in Bahrain and elsewhere
in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. shaikhdoma, any other currency such as
Sterling NdtCa, Iraq Dinar Notes, Egyptian pound Notes etc., and
Pakistan Rupee notes are not domestic currency and are therefore
exchangeable for domestic currency at rates which Cover the cost
of repatriation.
The poaitIon(in Iraq is similar with perhaps this
exception that Indian Currency notes may command a premium
with merchants owing to a demand for them for remittance
(smuggled perhaps) to Kuwait for the purchase of goods there,
Indian Currency being the domestic currency in Kuwait* This
demand would naturally not apply to Pakistan currency which
would be taken at repatriation cost only and may explain the
apparent tt non-recognition ,f of Pakistan Currency there.
yours ^faithfully.
Manager
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